North America Pharmaceutical Logistics Market: Forecast Analysis 2024-2032

North America Pharmaceutical Logistics Market: Forecast Analysis 2024-2032

Triton’s research report denotes that the North America pharmaceutical logistics market is expected to witness revenue growth at a CAGR of 7.81% during the forecast period 2024-2032.

The growth in pharmaceutical sales is a primary driver of the pharmaceutical logistics market in North America. Additionally, the rising geriatric population in the region has led to an increase in chronic diseases, spurring demand for modern healthcare products and services. As per estimates, the population aged 65 and over is expected to grow to 22% by 2040 in the US. This trend necessitates a robust infrastructure for the safe and secure transportation of pharmaceutical products, thereby creating demand for pharmaceutical logistics services.

The United States spearheads the regional market, reaching $26881.12 million by 2023.

American pharmaceutical companies allocate approximately 21% of their revenues to R&D. Hence, the United States has emerged as a dominant force in the global pharmaceutical sector, accounting for about half of total global sales.

Pharmaceutical distributors play a crucial role in the US market, handling around 92% of pharmaceutical sales. They streamline a complex supply chain that links over 1,300 manufacturers with more than 180,000 points of dispensation.

The biopharmaceutical industry is increasingly outsourcing shipping and distribution processes to 3PL pharmaceutical logistics providers. The regulatory landscape has also become more stringent, prompting a shift towards electronic tracking systems that offer real-time updates.

Innovations in cold storage technology are also driving the pharmaceutical logistics industry’s growth. For instance, in July 2020, Wabash National Corporation introduced refrigerated inserts from Gruau for its cold storage transportation solutions.

Market Forecast for Canada

Pharmaceuticals are a significant part of healthcare spending in Canada, accounting for around 15% of the total health expenditures. While pharmaceutical spending continues to rise, the growth rate has slowed across provinces and territories. In 2020, the United States accounted for 64% of Canadian pharmaceutical exports and 29% of its imports.

Canada’s domestic pharmaceutical industry comprises about 140 companies, more than 50 of which are research-based. Over half of the country’s pharmaceutical production is exported, predominantly to the US. A major growth driver is the increasing use of biologics, which also significantly fuels the expansion of the pharmaceutical logistics industry.

The market report is sectioned based on therapy area, pharma type, logistics type, and component. The therapy area is further divided into diabetes, communicable diseases, oncology, autoimmune diseases, pain management, cardiovascular diseases, respiratory diseases, neurological disorders, and other therapy areas.

Type 2 diabetes is the most prevalent form of diabetes, comprising over 90% of cases globally. Cancer is also widespread, with the International Agency for Research on Cancer (IARC) estimating that one in five people will develop cancer in their lifetime. Cancer treatment often involves medications like antimetabolites, alkylating agents, and plant alkaloids, which are widely prescribed. This growing prevalence is driving the demand for pharmaceutical logistics services.

The renowned companies in the pharmaceutical logistics market consist of Cardinal Health Inc, Cencora (AmerisourceBergen), CEVA Logistics, DB Schenker, Deutsche Post AG, and DSV.

Headquartered in Dublin, Ohio, Cardinal Health specializes in manufacturing and distributing medical products, alongside offering pharmaceutical distribution services and data solutions tailored for healthcare facilities. Collaborating with more than 4,500 sourcing and manufacturing partners, the company provides comprehensive solutions and data-driven insights. Catering to a wide spectrum of healthcare needs, Cardinal Health serves over 3.4 million home healthcare patients with a diverse portfolio comprising over 46,000 home healthcare products. The company operates through two primary business segments: pharmaceutical and medical.

Latest from the Company:

In April 2024, Cardinal Health announced the construction of a new 350,000-square-foot logistics center in Columbus, Ohio, to function as a central replenishment center for distributing over-the-counter consumer health products.